Please review the following article and then provide a well-written narrative that explains whether or not the demand for gasoline is elastic. Under what conditions might it be and under what conditions might it not be?
If you drive a car you may use your own driving/purchasing experience to explain your reasoning. If you use an example other than your own driving experience please include footnotes to your research that evidence your conclusions. It is most important to support your conclusion with sound reasoning.
Provide a brief paragraph on what the impact on the economy would be if the Federal Government initiated price controls over the price of gasoline at the pump.
Gasoline Demand More Responsive to Price Changes than Economists Once ThoughtRecent advances in applied work have overturned decades of conventional wisdom regarding how consumers respond to gasoline price fluctuations.